The Human Resources in Cloud Solution – How Do Organizations Benefit From It?

In modern times, businesses are battling, with a range of complex challenges including, Rapid globalization, Digital Disruption, Fast changing demographics, Regulatory compliance. The concept of cloud computing has successfully unleashed a series of new capabilities that are game-changers and responds in a much competitive manner.

However, many organizations that are looking towards capitalizing on the cloud’s ability to transform HR functions are being amassed with a new kind of reality. All sorts of optimism over the cloud solution’s active game-changing potential have begun to recede as many HR leaders realized that just engaging the HR in the cloud will not be able to deliver data-based insights, or smarter decision-making or anything that might indeed resemble HR transformation.

Globally, the human resource domain has been increasingly investing in cloud solution for a better future. Multiple surveys conducted on those lines have proved that an increasing number of HR executives who have already selected the new HRMS technology is all set to migrate to cloud-based solutions, while others are in the process of doing the same.

That is definitely good news for organizations that are always facing stiff competition. Advances in every field are responsible for reshaping business models, markets, skill requirements and of course a global workplace at such a pace that often tends to overwhelm traditional operating systems as well as HR systems.

Correctly applied and managed, cloud solutions in HR can propel organizations toward next level savings, efficiency, and decision-making while providing excellent dexterity to respond to new requirements as they emerge. Cloud solution offers marvelous possibilities to transform the traditional

HR function by further systematizing transactional processes and activities, driving niftier decisions via analytics and data, supporting talent management activities and repositioning HR overall to contribute towards business strategies. Premeditated and planned cloud-based solutions and programs have already been embraced by companies and are helping the latter reap an array of benefits.

Cloud is becoming a dominant delivery model for HR technology; 42% will replace their existing HR system with cloud technology.

Key benefits of the HR Embracing Cloud Solution

Organizations do benefit a lot from adopting cloud solutions into their human resource management systems. Despite certain cautions, the technology does have certain positive implications.

PwC says that the transition from on premise to cloud-based HCM solutions is a highly significant trend that cannot be overlooked. Majority of the business world has begun embracing cloud solutions and reaping its benefits to a large extent. Now, 65% of companies have adopted cloud solutions for dealing with complex workloads. Here’ goes the traditional benefits

#1. Substantially lowered costs

Cloud solutions in HR can end up delivering actual value to businesses by eliminating on-premise software maintenance, followed by various aspects of disaster recovery, sensitive hardware, expensive licenses and disruptive upgrades. The days of costly installments are gone; they are now being replaced with a lot more affordable subscription models where you only pay what you need. Essentially, cloud software manages to get you up and to run and increase your time value. Gradually it leads to improving efficiency and helps you avoid the costs and risks of traditional dispositions.

#2. Increased agility

Choosing a cloud-solutions based HCM platform gives businesses the opportunity to build greater agility and flexibility. Today’s workforce has changed substantially – it has become more mobile, often dispersed, remotely based and requires instant access to critical information, to remain more productive. The HR itself at the same time may choose to work out in various locations and also look for a simpler way to access as well as manage a multitude of workforce requests. Cloud solutions do not only provide the access and self-service team but also succeeds in alleviating stress on the HR.

#3. Increased innovation

Agility is a great competitive advantage, but the cloud solutions also support a somewhat greater ability to innovate. In a survey conducted by PwC,

40% of respondents said that innovation was a primary motivator in the decision to move to the cloud.

Their reasoning was based on the fact that the cloud allows them to adopt software changes more quickly. When certain software improvements are made, cloud-solutions technologies get automatically updated without any disruptions, so the organization is always up-to-date with all kinds of latest technologies.

#4. Greater organizational security

In earlier times, organizations were skeptical to some extent regarding the safety aspect of moving to cloud solutions. However, with time, the maturity of moving to cloud solutions has increased considerably, and now organizations are acknowledging the aspect of the organizational security of turning to the cloud. Now, nearly 90 percent corporate leaders believe that their already existing cloud solutions offer protection that is above average. So, the bottom line – cloud-based solutions that consider application, network operations and physical security measures is often provided more security than on premise computing for businesses.

It can be said, that, change is undoubtedly a double-edged sword and business need to understand that. While it can offer excellent opportunities for exclusive revenue generation, it can also pose significant challenges at the same time. Change in today’s HR landscape comes in many forms, and cloud solutions are one of them. Moreover, all these changes provide opportunities for growth, but only if you are in a position to capitalize on them.